Retirement Calculator
Plan your retirement savings and estimate monthly income
Enter values above to calculate
How to Use
- Enter your current age and desired retirement age.
- Enter your current retirement savings and monthly contribution.
- Enter expected annual return rate (7% is a common estimate for diversified portfolio).
- Enter expected inflation rate and monthly income needed during retirement.
- Click 'Calculate' to see if you're on track for retirement.
About Retirement Planning
The 4% Rule
A common retirement guideline is the 4% rule: withdraw 4% of your savings per year. To support $3,000/month ($36,000/year) in retirement, you need $36,000 ÷ 0.04 = $900,000. This rule assumes a 30-year retirement with a diversified portfolio of stocks and bonds, historically surviving about 95% of scenarios.
How Projections Work
Projected savings uses compound interest with monthly contributions: each month, the existing balance earns (return rate / 12), then the monthly contribution is added. This compounds over the years to retirement. The required savings is based on the present value of an annuity — how much is needed to fund your monthly withdrawals.
Inflation in Retirement
A $3,000/month need today will require more in the future due to inflation. At 3% inflation, you'll need $4,000/month in 10 years and $5,418/month in 20 years to maintain the same purchasing power. This calculator uses today's dollars — you should plan for inflation by either adjusting contributions upward or assuming higher returns.
Retirement Savings Tips
Start as early as possible — compound interest is most powerful over long periods. Maximize tax-advantaged accounts (401k, IRA in the US; pension accounts in China). Increase contributions when income rises. Consider Social Security or pension income in your planning. Regularly rebalance your portfolio and reduce risk as retirement approaches.
Key Features
- Projects retirement savings using compound interest with monthly contributions
- Calculates required savings based on monthly income need and 4% withdrawal rule
- Shows surplus or shortfall against retirement goal
- Estimates years of income the projected savings will support